Ramsay completes a $1.5bn refinancing with a sustainability linked loan facility
18th June 2021
Ramsay Health Care (ASX: RHC) (Ramsay) announced today that it has successfully completed the refinancing of its Wholly Owned Funding Group1 for a (WOFG) debt facility maturing in October 2022, with a new $1.5 billion multi-currency2 syndicated sustainability linked loan facility.
Consistent with Ramsay’s aim to extend and stagger the tenor of its debt, the new facility comprises three $500m tranches maturing in three, four and five years respectively.
The new facility has embedded targets that are aligned with the three pillars of the ‘Ramsay Cares’ sustainability strategy, Caring for People, Caring for Planet and Caring for Community.3 The targets have been designed to drive a more intense focus through the business on sustainability, including on the mental health and wellbeing of staff, setting the foundations to reduce our energy intensity and emissions and an emphasis on responsible sourcing within our medical supply chains.4
Ramsay Health Care Group CFO Martyn Roberts said, "we are pleased to have completed the first step in the process of extending and staggering the tenor and diversifying the sources of our debt. The sustainability link demonstrates our commitment and accountability to the ‘Ramsay Cares’ strategy with meaningful targets that will require us to increase our investment and emphasis on key programs across the organisation."
“The new facility was significantly oversubscribed and received support from existing and new lenders reflecting the growing level of interest in supporting sustainability linked loans. We would like to thank our sole capital structuring and sustainable finance advisor HSBC, along with the other arranging banks, NAB, MUFG and CBA for their support in the transaction.”
For Further Information Contact:
Group Head of Investor Relations
Ramsay Health Care
+61 414 609 192
ABOUT THE ‘RAMSAY CARES’ STRATEGY
Ramsay Cares is built on three key expressions of care. It is about healthier people, a thriving planet and a stronger community.
The first pillar, Caring for People is about our commitments to:
- Our patients - through high quality care and experience
- Being a trusted partner for doctors
- Importantly being strong supporters of Ramsay’s staff
Caring for Planet is Ramsay’s commitment to improving its environmental performance
Caring for Community recognises the important role Ramsay has in the community:
- Ramsay is a large employer particularly in regional areas and supports local communities.
- The investment Ramsay makes into medical research and clinical trials and teaching not only helps our patients but also delivers for the broader community.
ABOUT RAMSAY HEALTH CARE
Ramsay Health Care (Ramsay) provides quality health care through a global network of clinical practice, teaching and research. Ramsay Health Care’s global network extends across 10 countries, with over eight million admissions/patient visits to its facilities in over 460 locations. Ramsay was founded by Paul Ramsay AO (1936-2014) in 1964 and has always focused on maintaining the highest standards of quality and safety; being an employer of choice; and operating the business based on a culture known as the “Ramsay Way” with a philosophy based on “People Caring for People”.5 Ramsay listed on the Australian Stock Exchange in 1997 and has a market capitalization of A$14.9bn6 and an enterprise value of A$17.0bn6 (EV of A$22.1bn inclusive of lease liabilities). The Ramsay Group employs over 77,000 people globally.
Ramsay’s operations are split across four regions:
Ramsay Australia has 72 private hospitals and day surgery units in Australia and is Australia’s largest private hospital operator. Ramsay operations include mental health facilities as well as the operation of three public facilities. In addition, Ramsay has established the Ramsay Pharmacy retail franchise network which supports more than 59 community pharmacies. Ramsay Australia admits more than one million patients annually and employs more than 31,000 people.
Ramsay Santé is the second largest private care provider in Europe, operating specialist clinics and primary care units in approximately 350 locations across five countries in Europe. In France, Ramsay Santé has a market leading position with 132 acute care and mental health facilities. In Denmark, Norway and Sweden, Ramsay Santé operates 210 facilities including primary care units, specialist clinics and hospitals. Ramsay Santé also operates a 93-bed hospital in Italy. Ramsay Santé employs around 36,000 staff and its facilities treat approximately seven million patients each year. Ramsay Health Care owns 52.5% of Ramsay Santé which is listed on the European financial markets’ platform Euronext.
Ramsay UK has a network of 34 acute hospitals and day procedure centres providing a comprehensive range of clinical specialties to private and self-insured patents as well as to patients referred by the NHS. Ramsay UK also operates a diagnostic imaging service and provides neurological services through its three neurorehabilitation facilities. Ramsay UK cares for almost 200,000 patients per year and employs more than 7,300 people.
In Asia, Ramsay Sime Darby Health Care Sdn Bhd operates three hospitals in Indonesia, three hospitals and a nursing college in Malaysia and one day surgery in Hong Kong. The business employs more than 4,000 people. Ramsay Sime Darby is a 50:50 joint venture arrangement with Malaysian multinational conglomerate Sime Darby Berhad.
(FOOTNOTES)1. WOFG excludes Ramsay Santé and Ramsay Sime Darby
2. Can be drawn in Australian dollars, Euro’s and US dollars
3. As part of the SLL process Sustainalytics has provided a second party opinion of the loan against the 2019 Sustainability Linked Loan Principles published by the Loan Market Association, Asia . Pacific Loan Market Association and the Loan Syndication and Trading Association, to ensure it aligns with strategy, has robust targets and includes external review of performance
4. The measures only relate to the businesses represented by the WOFG, Australia and the UK
5. Please refer to https://www.Ramsayhealth.com/About-Us/Values website
6. Closing price on 25th May 2021